ST. PAUL, MINN. –Sen. John Hoffman (DFL-Champlin, Brooklyn Park and Coon Rapids) voted on Friday to pass the Senate’s omnibus tax bill, which includes repealing all three business to business taxes. Sen. Hoffman was a co-author of the bill that called for repeal of the tax on electronic and commercial equipment repair and maintenance, telecommunications equipment and warehousing and storage services. The bill passed by a 58-5 vote.
“I am proud of the bi-partisan support on this omnibus tax bill. The combination of tax repeals, conformity changes and putting money into our state’s budget reserves represents sound and balanced fiscal decision-making,” said Sen. Hoffman.
Up to 400,000 Minnesota taxpayers filing taxes by the April 15 deadline will see lower tax bills — and in some cases, higher refunds — because of federal tax conformity changes included in the bill. These changes mean more money in Minnesotans’ pockets. The bill also expands the Working Family Tax Credit to reach 16,000 new Minnesotans and increased the credit for more than 300,000 other Minnesotans who already qualify. Other forms of tax relief appear in student loan interest deductions, higher education tuition deductions and the ability for K-12 teachers to deduct some of the expenses they incur when investing their own money into their classrooms.
“The conformity changes will make a real difference in the lives of Minnesota families. Eliminating the marriage penalty will benefit approximately 650,000 joint filers next year,” said Sen. Hoffman.
The bill also transfers $150 million into the state budget reserve in July and sets an automatic threshold for future surplus revenues. This will increase the state’s total reserve to $810.9 million.
“Putting money into our state’s ‘rainy day fund’ is essential. This act – and setting an automatic threshold will support Minnesota’s long-term economic stability. Saving, rather than spending all of the surplus as many have called for, is the responsible thing to do,” said Sen. Hoffman.
The tax bill was originally introduced on Thursday, but the GOP refused to suspend the rules to vote on it, which forced a delay until Friday. The legislation will now be sent to the House of Representatives. If the House chooses to take the Senate language, it will head to the governor’s desk. If they do not accept the Senate language, the legislation will head to conference committee to work out the differences between the two bills.
Sen. Hoffman welcomes additional questions or comments; you can contact him at Sen.John.Hoffman@senate.mn or by calling his office at (651) 296-4154.